A new white paper examines loan options for members who have experienced financial setbacks for the first time in their lives.
Offered through the CUNA Lending Council, the “Lending to the Newly Credit-Challenged: A Second Chance for First-Time Defaulters” paper outlines additional planning and action steps to help members regain their financial footing and to help credit unions put their “people helping people” mission into action in a way that sets them apart in the financial services marketplace without increasing delinquencies and charge-offs.
The research also delves into past and possible future economic trends behind the return to face-to-face lending and presents examples of these interviewing techniques in action. The need for staff training, the reasons behind organizational shifts to centralized lending, and the benefits of expanding access to financial counseling are highlighted in the paper as well.
A 2010 survey by the Deloitte Center for Financial Services estimates that one in 10 Americans fell behind on their loan payments for the first time ever during the recession of 2007-2009, the council said.